E-mini NASDAQ-100 Index

E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – Strengthens Over 7024.75, Weakens Under 6966.50

December E-mini NASDAQ-100 Index futures finished higher last week and in a position to resume the move on Monday if it continues to move along the path it has been following since the bottom on November 20. This Gann angle has been guiding the index higher at a rate of 64 points per day for seven trading sessions. The catalysts behind the price action are the outlook for a slower pace of Fed rate hikes and optimism that the U.S. and China would reach a trade agreement this weekend.

Last Friday, the December E-mini NASDAQ-100 Index settled at 6949.50, up 36.25 or +0.52%.

E-mini NASDAQ-100 Index
Daily December E-mini NASDAQ-100 Index

Daily Technical Analysis

The main trend is down according to the daily swing chart. A trade through 7231.00 will change the main trend to up. A move through 6449.50 will signal a resumption of the downtrend.

Daily Technical Forecast

Based on last week’s close at 6949.50, the direction of the December E-mini NASDAQ-100 Index on Monday is likely to be determined by trader reaction to a pair of Gann angles 6966.50 and 7024.75.

Bullish Scenario

Overtaking 6966.75 will be the first sign of strength. Overcoming and sustaining a move over 7024.75 will indicate the buying is getting stronger. If this move creates enough upside momentum then look for the rally to extend into the main top at 7231.00.

A breakout over 7231.00 will change the main trend to up. This is a potential trigger point for an acceleration to the upside with the next downtrending Gann angle coming in at 7376.75.

Bearish Scenario

A sustained move under 6966.50 will signal the presence of sellers. This Gann angle has been guiding the market higher for seven sessions. If this move attracts enough sellers then look for a potential acceleration to the downside with the next uptrending Gann angle coming in at 6705.50.

Additional Gann angle targets are 6577.50, 6513.50 and 6481.50. This is the last potential support angle before the 6449.50 main bottom.

Published by

James Hyerczyk

James A. Hyerczyk has worked as a fundamental and technical financial market analyst since 1982. His technical work features the pattern, price and time analysis techniques of W.D. Gann.